On March 15th, I added 80 shares of Richard’s Packaging Income Fund to The Dividend Beginner’s portfolio. I purchased the shares at $26.30, with a trading cost of $6.95 for a total investment of $2,110.95.
Reasons I bought Richard’s Packaging
- Has a 1-year gain of 30%
- Has a yield of ~5%
- Pays a monthly dividend
- Has increased the dividend for a consecutive 3 years
- Just increased their dividend by 18% in March
- Is continuing to make all-time highs
- Provides exposure to the “Basic Materials” sector, of which I had none
- 2016 payout ratio was 53% (richardspackaging.com)
- Note that the distributions were return of capital (so I tax shelter this in my TFSA)
- Management defines payout ratio as distributions and dividends declared over distributable cash flow
Dividend Income increased 4.13%
My new shares in Richard’s Packaging Income Fund add $105.60 to my annual dividend income, or $8.80 per month. RPI.UN has increased their dividend consecutively for 3 years.
Most recently, at the beginning of March, RPI.UN passed an 18% raise to the monthly distribution, from 9.35¢ to 11¢.
|Annual Dividend Income||
|Monthly Dividend Income||$213.01||$8.80||